Income-Producing Commercial Property on
For Sale
Contact for pricing
8228 Oak St, New Orleans, LA 70118
Two-story commercial building with off-street parking on bustling Oak Street.
Property Size3,540 SF
Price / SF$324.86
Days on Market806
Property Features for 8228 Oak St
General Information
Standard status
Active
Size
3,540 SF
Class
B
Total Parking Spaces
3
Property subtype
Retail
Zoning
HU-MU
Occupancy
41%
Lease Type
NNN
Investment Type
Net Lease
Building Details
Year Built
1960
Year Renovated
2023
Buildings
2
Stories
2
Units
2
Tenancy
Multi
Listing Agency:
Ben + Burka Commercial Real Estate
(504) 301-1002
Listed By:
Aaron Kazanoff · License #LA 0995700882
Source:
Crexi
Added: Jun 18, 2024
Changed: Aug 26
Last Checked: Aug 28 at 10:23PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Ben + Burka Commercial Real Estate
Investment Insights
Based on property information with market context.
The property at 8228 Oak Street is a two-story commercial building situated in a vibrant New Orleans location. The building features ample off-street parking and is located on Oak Street. The ground floor is leased on a NNN basis to Primo Hoagies, a nationally recognized sandwich franchise. The upstairs unit is occupied on a month-to-month basis by a therapy office/studio apartment and could be owner/operated or leased out on a long term basis. The property is move-in ready for any investor seeking rental income. The property is located in a popular commercial district near Zotz Cafe, Oak Street Brewery, Jacques-Imo’s, Maple Leaf Bar, and Breads on Oak. The property size is 3540 square feet.
Key Highlights
- Income‑producing commercial property with established tenant (Primo Hoagies).
- Favorable NNN lease in place with national franchise (Primo Hoagies).
- Desirable location on bustling Oak Street in New Orleans.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$43,712
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.80%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$874,240
$874.2K
Cap Rate 7%
$624,457
$624.5K
Cap Rate 9%
$485,689
$485.7K
Market Conditions
NOI Build-Up for 3,540 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$63.7K $18.00/SF
− Vacancy
−$1.3K −$0.36/SF
EGI
$62.4K $17.64/SF
− OpEx
−$18.7K −$5.29/SF
NOI
$43.7K $12.35/SF
Area
New Orleans, LA
Vacancy
2.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$874,240
Cap Rate 7%
$624,457
Cap Rate 9%
$485,689
Alternative Uses
Best Use
Retail
$624.5K
$546.4K – $728.5K
NOI $43,712 @ 7.0% cap · market cap 3.80%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$899.8K
$787.3K – $1.05M
NOI $62,983 @ 7.0% cap · market cap 5.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,294
Businesses Nearby
37k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 57%
Dining 37%
Home Improvements & Furnishings 3%
Beauty & Spa 3%
Shell
Shops & Services
9,171 visits/mo
0.4 miles
Chevron
Shops & Services
5,992 visits/mo
0.3 miles
la Madeleine Country French Cafe
Dining
5,803 visits/mo
0.4 miles
Whitney Bank
Shops & Services
4,842 visits/mo
0.2 miles
Taco Loco
Dining
3,633 visits/mo
0.4 miles
Demographics for 70118, LA
35,635
Population
15,464
Households
2.3
Avg Household Size
31
Median Age
54%
College-Educated
92%
High-School Grad
4.6 sq mi
ZIP Area
7,747
Density / Sq Mi
$62,665
Median Household Income
$28,199
Median Earnings
$1,257
Median Rent
$451,600
Median Home Value
Market
Vacancy Rate% for Retail in New Orleans, LA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Two-story commercial building with off-street parking on bustling Oak Street.
Where is this retail space located?
The property is located at 8228 Oak St New Orleans, LA.
What is the asking price?
The asking price for this property is $1,150,000.
What are key features of this property?
This property features: Income‑producing commercial property with established tenant (Primo Hoagies).; Favorable NNN lease in place with national franchise (Primo Hoagies).; Desirable location on bustling Oak Street in New Orleans.
